Fujitsu Siemens To Sell Egenera Blade Servers In EuropeFujitsu Siemens To Sell Egenera Blade Servers In Europe

Blade-server specialist Egenera Inc. on Wednesday announced an agreement under which Fujitsu Siemens Computers will integrate Egenera's products into its Primergy server portfolio for sale in Africa, Europe, and the Middle East.

As part of the deal, Fujitsu Siemens has committed to purchasing $300 million in Egenera blade-server products over the next 30 months, which could allow Egenera to double its current annual revenue of about $100 million.

"This deal will provide us growth so much faster and to such a larger degree than we would have been able to do on our own," says Susan Davis, VP of marketing and product management at Egenera.

Currently about 80% of Egenera's revenue comes from North America, with the majority of the balance from Japan and the Pacific Rim, Davis says. Egenera over the past year had opened small offices in England and Germany in an attempt to build its business in Europe, but the Fujitsu Siemens deal will provide a much quicker and cheaper option for market growth, she says.

According to analyst firm Gartner, Fujitsu Siemens was the fourth-largest provider of blade-server systems in the second quarter, with revenue of $12.7 million, or about 3% of the market. IBM and Hewlett-Packard dominate the blade-server market, controlling 35% and 34% of market revenue, respectively. Dell, which re-entered the market last year, was third with a 7.5% share.